I have read the tokenomics model for midnight. It mentions that having NIGHT in wallet would start accumulating DUST.
Say I have NIGHT in cardano wallet, how will that cardano wallet start to accumulate DUST in midnight? Is the DUST collection process automatic or do I initially have to submit a transaction for it (either in cardano or maybe midnight) to tie the addresses ?
The generation of DUST will be tied to the NIGHT tokens you hold on Midnight, not on Cardano.
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Then DUST would be the native substrate currency from pallet_balance and NIGHT would be asset from pallet-assets(for eg). Am I correct or is it the other way around?
DUST generation is still in development and isn’t public yet, so I can’t say exactly how it’ll work. However, the tokenomics paper mentions that NIGHT, Midnight’s Cardano Native Token, will be used to generate DUST, which is the network’s capacity resource.
Though, DUST is a shielded resource which cannot be implemented in native asset pallets so it’s going do be done via client components and proofs 
While the Cardano NIGHT (cNIGHT) to DUST generation feature is still in development, generating DUST from a Cardano wallet will be possible.
The expected gesture will require the user to register a mapping of a DUST address to a Cardano Wallet.
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